In the wake of its five-month-long bathroom policy, Target (TGT) Corporation continues to implode.
Within a month after the misguided policy, the company’s market cap had already declined by $9 billion compared to where it should have been had Target kept its pre-April 19 correlation with its primary competitors, Walmart (WMT) and Costco (COST).
By late May, the market cap hit reached $10.5 billion. As of the second week of June, the loss was $11 billion.
Second-quarter earnings data are now out, showing that Target’s earnings plummeted nearly 10%, with projected lower sales estimates for the remainder of 2016. Net sales declined more than 7% from the same period year over year.
Corporate executives are leaving in droves. Just 10% of the most senior executives in place two years ago remain with the company, including two major losses during the past month.
Had Target’s market cap continued to follow close pace with Walmart, as it had...(Read Full Post)